(k) Provisions, contingent liabilities and contingent assets
Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will
be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognised for future operating losses.
Provisions are measured at the present value of management's best estimate of the expenditure required to settle the present obligation at the end of the reporting
year. The discount rate used to determine the present value is a pre tax rate that reflects current market assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.
Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non
occurrence of one or more uncertain future events.
Contingent assets are not recognized in the financial statements unless it is virtually certain that the future event will confirm the asset's existence and the asset
will be realised.
(l) Revenue recognition
Revenue is measured at the value of the consideration received or receivable. Amounts disclosed as revenue are inclusive of excise duty and net of returns, trade
allowances, rebates, discounts, value added taxes, goods and services tax and amounts collected on behalf of third parties.
The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and
specific criteria have been met for each of the Company's activities as described below.
Sale of goods -
Sales are recognised when substantial risk and rewards of ownership are transferred to customer, In case of domestic sales take place when goods are dispatched
or delivery in handed over to transporter, in case of export sales place when goods are shipped on board based on bill of lading.
Sales are recognised when the control of the goods is transferred to customer, being when the goods are delivered to the customer and there are no unfulfilled
obligation that could affect the customer's acceptance of the product. Delivery occurs when the products have been shipped or delivered to the specific location as
the case may be, which signifies the risks of obsolescence and loss has been transferred, and either the customer has accepted the products in accordance with
the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied. Sale of goods include related ancillary services which
is recognised over the year of delivery of goods, if any.
Other operating revenue - Export incentives -
Export Incentives under the, “Duty Draw back Scheme", "Merchandise Export from India Scheme", "Remission of Duties and Taxes on Exported Products" etc. is
accounted in the year of export.
(m) Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the year in which the
employees render the related service are recognised in respect of employees' services up to the end of the reporting year and are measured at the amounts
expected to be paid when the liabilities are settled.
(ii) Other long-term employee benefit obligations
The liabilities for earned leave that are not expected to be settled wholly within 12 months after the end of the year in which the employees render the related
service. An actuarial valuation is obtained at the end of reporting year. The present value of expected future payments to be made in respect of services provided
by employees up to the end of the reporting year using the projected unit credit method.
(iii) Post-employment obligations
Gratuity obligations
The liability or asset recognised in the balance sheet in respect of defined gratuity plans is the present value of the defined benefit obligation at the end of the
reporting year less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The net interest cost is calculated by actuary applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This
cost is included in employee benefit expense in the Statement of Profit and Loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the year in which they occur, directly
in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet.
Changes in the present value of the defined benefit obligation resulting from plan amendments or curtailments as calculated by actuary are recognised immediately
in the Statement of Profit and Loss as past service cost.
Defined Contribution Plans
Defined Contribution Plans such as Provident Fund etc., are charged to the Statement of Profit and Loss Account as incurred.
Termination benefits
Termination benefits are payable when employment is terminated by the company before the normal retirement date, or when an employee accepts voluntary
redundancy in exchange for these benefits. The company recognises termination benefits at the earlier of the following dates: (a) when the company can no longer
withdraw the offer of those benefits; and (b)when the company recognises costs for are structuring that is within the scope of Ind AS 37 and involves the payment
of terminations benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of
employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting year are discounted to present value.
Defined contribution plans
Provident Fund
Defined contribution plans such as provident fund etc., are charged to the statement of profit and loss as incurred. The Company has no further obligations over
and above the contributions already made.
Gratuity
The liability or asset recognised in the balance sheet in respect of defined gratuity plans is the present value of the defined benefit obligation at the end of the
reporting year less the fair value of plan assets. The defined benefit obligation is calculated annually by actuaries using the projected unit credit method.
The net interest cost is calculated by actuary applying the discount rate to the net balance of the defined benefit obligation and the fair value of plan assets. This
cost is included in employee benefit expense in the statement of profit and loss.
Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the year in which they occur, directly
In other comprehensive income. They are included in retained earnings in the statement of changes in equity.
Other employee benefits
Compensated absences
The liabilities for earned leave are not expected to be settled wholly within 12 months, after the end of the year In which the employees render the related service.
An actuarial valuation is obtained at the end of reporting year. The present value of expected future payments to be made in respect of services provided by
employees up to the end of the reporting year using the projected unit credit method.
(n) Foreign currency transactions
Functional and presentation currency
The financial statements are presented in Indian rupee (INR), which is Company's functional and presentation currency.
Transaction and Balances
Transactions in foreign currencies are recognised at the prevailing exchange rates on the transaction dates. Realised gains and losses on settlement of foreign
currency transactions are recognised in the Statement of Profit and Loss.
Monetary foreign currency assets and liabilities at the year-end are translated at the year-end exchange rates and the resultant exchange differences are
recognised in the Statement of Profit and Loss.
(n) Income tax
The Income tax expense or credit for the year is the tax payable on the current year's taxable income based on the applicable income tax rate adjusted by changes
In deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.
Deferred income tax is provided in full, using the liability method on temporary differences arising between the tax bases of assets and liabilities and their carrying
amount in the financial statement. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the
reporting year and are excepted to apply when the related defer income tax assets is realised or the deferred income tax liability Is settled.
Deferred tax assets are recognised for all deductible temporary differences and unused tax losses only if it Is probable that future taxable amounts will be available
to utilise those temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances
relate to the same taxation authority. Current tax assets and tax liabilities are off set where the Company has a legally enforceable right to offset and Intends either
to settle on a net basis, or to realize the asset and settle the liability simultaneously.
Current and deferred tax is recognised in the Statement of Profit and Loss, except to the extent that it relates to items recognised in other comprehensive income
or directly in equity. In this case, the tax is also recognised in other comprehensive income or directly In equity, respectively.
Minimum Alternate Tax credit is recognised as deferred tax asset only when and to the extent there is convincing evidence that the Company will pay normal
income tax during the specified year. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the
extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified year.
(o) Earnings Per Share
Basic earnings per share
Basic earnings per share is calculated by dividing:
- the profit attributable to owners of the Company
- by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:
- the after Income tax effect of Interest and other financing costs associated with dilutive potential equity shares, and
- the weighted average number of additional equity shares that would have been outstanding assuming the conversion of ail dilutive potential equity shares.
(p) Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
(q) Manufacturing and operating Expenses
The Company classifies separately manufacturing and operating expenses which are directly linked to manufacturing and sendee activities of the company.
(r) Impairment of non-financial assets
Non-financial assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An
Impairment loss Is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an
asset's fair value less costs of disposal and value In use. For the purpose of assessing impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash Inflows which are largely independent of the cash Inflows from other assets or group of assets (cash-generating units). Non-financial
assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting year.
(s) Exceptional Items
Exceptional items Include income or expense that are considered to be part of ordinary activities, however, are of such significance and nature that separate
disclosure enables the user of the Financial Statements to understand the impact in a more meaningful manner. Exceptional items are identified by virtue of either
their size or nature so as to facilitate comparison with prior years and to assess underlying trends in the financial performance of the Company.
(t) Share Based Payments
Share based compensation benefits are provided to certain employees of the Company via employee stock option scheme of the Company.
The fair value options granted under the aforesaid scheme is recognised as an employee benefit expense with a corresponding Increase in equity. The total amount
to be expensed is determined by reference to the fair value of the options granted. The total expense is recognised over the vesting year, which is the year over
which all of the specified vesting conditions are to be satisfied. At the end of the each year, the Company revises its estimate of the number of options that are
expected to vest based on the non-market vesting conditions and service conditions. It recognises the impact of the revision to original estimates, if any, in the
statement of profit and loss, with a corresponding adjustment to other equity.
(u) Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are
unsecured and are usually paid within 30-60 days of recognition. Trade and other payables are presented as current liabilities unless payment is not due within 12
months after the reporting year. They are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method.
(v) Contributed equity
Equity shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown In equity as a deduction, net of tax, from the proceeds.
(vi) Discontinued operations
A discontinued operation is a component of the Company's business, the operations and cash flows of which can be clearly distinguished from those of the rest of
the Company and which represents a separate major line of business or geographical area of operations and is part of a single co-ordinated plan to dispose off a
separate major line of business or geographical area of operations.
Classification as a discontinued operation occurs upon disposal or when the operation meets the criteria to be classified as held for sale, if earlier.
When an operation is classified as a discontinued operation, the comparative statement of profit and loss is re-presented as if the operation has discontinued from
the start of the comparative year.
(vii) Recent Pronouncements
The Company applied for the first time these amendments of Ind AS 8 , Ind AS 1 and Ind AS 12 and there Is no material impact on financials.
Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as
issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the
Company.
1C Critical estimates and judgements
The preparation of financial statements requires the use of accounting estimates which by definition will seldom equal the actual results.
This note provides an overview of the areas that Involved a higher degree of judgement or complexity, and Items which are more likely to be materially adjusted
due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is
included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.
The areas involving critical estimates or judgement are:
(i) Estimated useful life of PPE and intangible assets -
The Company reviews the useful lives of property, plant and equipment and intangible assets at the end of each reporting period. This reassessment may result in
change in depreciation and amortisation expense in future periods.
(ii) Inventory write down -
The Company reviews the allowance for defective and obsolete items inventory, wherever necessary at the end of each reporting period.
(iii) Estimation of tax expenses, utilisation of deferred tax assets and tax payable -
The Company reviews the carrying amount of tax expenses, deferred tax assets and tax payable at the end of each reporting period.
(iv) Estimation of Defined benefit obligation -
The cost of post-employment benefits is determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future
salary increases and mortality rates. Due to the long term nature of these plans, such estimates are subject to significant uncertainty.
M'lrm
(I) The Company has received investigation report under Rule 129 of the Central Goods And Service Tax Rules, 2017 dated 24 September 2019 on 23
October 2019 from Director General of Anti Profiteering, which alleges that the Company has profiteered * 1,848.34 lakhs for the period 15 November 2017
to 31 December 2018 by not passing the benefit of GST rate reduction from 28% to 18% w.e.f. 15 November 2017. Further, the Company received an order
dated 11 May 2020 with respect to the above.
The Company filed a writ petition with Delhi High Court against the aforesaid order on 11 August 2020. The Company has deposited profiteered amount of T
1,565.91 lakhs under protest vide Delhi High Court order dated 12 February 2021.
In the assessment of the management, which is supported by legal advice, the Company believes that they have passed on the benefit of relevant price
reductions to its customers and considering this, aforesaid matter is not likely to have significant impact and accordingly, no provision has been considered
in the financial statements and the amount of ^ 1,848.34 lakhs has been disclosed as contingent liability.
(II) The Competition Commission of India (CCI) has initiated an investigation into alleged cartelisation between manufacturers of male latex condoms in
government tenders for the period 2010-2013 in June 2015. The Company has submitted documents required by investigating agency and is awaiting its
report.
(III) The Supreme Court of India, through a ruling in February 2019, provided guidelines for interpreting the scope of compensation on which the
organisation and its employees are to contribute towards Provident Fund. There is significant uncertainty and ambiguity in interpreting and giving effect to
the guidelines of Supreme Court. The Company believes that there will be no significant impact on its contributions to Provident Fund due to the Supreme
Court Order. The Company will evaluate its position and act, as clarity emerges on impact of the ruling.
The amounts shown in respect of above items represent the best possible estimates arrived at on the basis of available information. The uncertainties are
dependent on the outcome of the different legal processes. The timing of future cash flows will be determinable only on receipt of judgements / decisions
pending with various forums / authorities.
The Company does not expect any reimbursements in respect of the above contingent liabilities.
The Company's financial risk management is an integral part of how to plan and execute its business strategies. The Company's financial risk management policy is set
by the Board. The details of different types of risk and management policies to address these risks are listed below:
37.1 Market risk
Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a
financial instrument may change as a result of changes in foreign currency exchange rates and other market changes that affect market risk sensitive instruments.
Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables and payables.
The Company manages market risk through finance department, which evaluates and exercises independent control over the entire process of market risk
management. The finance department recommend risk management objectives and policies, which are approved by Senior Management. The activities of this
department include management of cash resources, implementing hedging strategies for foreign currency exposures, if any and ensuring compliance with market risk
limits and policies.
Market Risk- Foreign currency risk
The Company operates internationally and portion of the business is transacted in several currencies and consequently the Company is exposed to foreign exchange
risk through its sales and services in overseas and purchases from overseas suppliers in various foreign currencies.
For unhedged foreign currency exposure (Refer note 39).
37.2 Credit risk
Credit risk management
Credit risk is the risk that a counterparty fails to discharge its obligation to the Company.
The Company is exposed to credit risk from its operating activities primarily trade receivables, security deposits and deposits with banks. Management has a credit
policy in place and the exposure to credit risk is monitored on an ongoing basis.
Cash and cash equivalent, deposit with banks and other bank balances
Credit risk related to cash and cash equivalent, deposit with banks and other bank balances is managed by accepting highly rated banks. Management does not expect
any losses from non-performance by these counterparties.
Other financial assets measured at amortized cost
Other financial assets measured at amortized cost includes bank deposits, security deposits and other receivables. Credit risk related to these assets are managed by
monitoring the recoverability of such amounts continuously, while at the same time the internal control system in place ensures that amounts are within defined limits.
The expected credit loss on these financial instruments is expected to be insignificant.
Trade and other receivables
The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix. The provision matrix
takes into account historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days
for which the receivables are due and the expected loss rates have been computed based on ageing. Further, during the current year, the Company has assessed
credit risk on an individual basis in respect of certain customers.
38.1 Risk Management
The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to shareholders.
The capital structure of the Company is based on management's judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day
needs. The management considers the amount of capital in proportion to risk and manages the capital structure in light of changes in economic conditions and the risk
characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders,
return capital to shareholders or issue new shares.
The Company's policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to
sustain future development and growth of its business. Tire Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.
38.2 Dividend
The interim dividend declared and paid by the Company during the year ended 31 March 2024
The chief operational decision maker (Chief Executive Officer) monitors the operating results of its Business segments separately for the purpose of making decision about
resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured consistently with profit or loss in the financial
statements. Operating segment have teen identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.
The accounting policies adopted for segment reporting are in line with the accounting policies adopted for preparation of financial statements as disclosed in Note IB.
Segment revenue, segment results, segment assets and segment liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a
reasonable basis.
The Chief Executive Officer uses the following measure to assess the performance of the operating segments.
Segment revenue and results:
The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocable income).
Segment assets and Liabilities:
Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipment, trade receivables, inventories and other
operating assets. Segment liabilities primarily include trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business
segments are shown as unallocable assets / liabilities.
Note 41 - Share-based payments
(1) Employee option plan
The establishment of J.K. Helene Curtis Limited - Employee Stock Option Scheme 2018 (JKHC ESOP 2018) and Raymond Consumer
Care Private Limited - Employee Stock Option Scheme 2019 (RCCPL ESOP 2019) was approved by shareholders in their
extraordinary general meetings held on 30 October 2018 and 30 April 2019 respectively. Pursuant to the Scheme, all the employees,
eligible under earlier JKHC ESOP 2018 and RCCPL ESOP 2019 (hereinafter together referred to as 'Earlier ESOS') became eligible
under new Employee Stock Option Scheme ('New ESOS') in Raymond Consumer Care Limited (RCCL) for share options held in Earlier
ESOS.
The Board of Directors vide their meeting dated 29 June 2020 approved that terms and conditions of New ESOS will remain same as
those of earlier ESOS and thus accounting and disclosure therein has been done in accordance with terms and conditions prescribed
in earlier ESOS, pending approval of new ESOS by the Company's Board of Directors.
The Employee Stock Option Plan is designed to retain and reward the employees as stakeholders in the growth and success of the
Company as they are the key catalyst in progress of the Company. Under the plan, participants are granted options which vest upon
completion of vesting period as described below from the grant date. Participation in the plan is at the Nomination and
Remuneration Committee's discretion and no individual has a contractual right to participate in the plan or to receive any guaranteed
benefits.
(3) Raymond Consumer Care Limited (RCCL), has granted Stock Options to its eligible employees and employees of the Company, in
accordance with the The Raymond Consumer Care Limited Employee Stock Appreciation Rights Scheme 2021 (RCCL ESAR 2021)
also known as the New ESOS Scheme with the proportionate vesting period spread over 4 years from the date of IPO with an
exercise period of one year. The holder of each option is eligible for one fully paid equity share of the company of the face value of
? 10 each on payment of ? 10 per option. The fair value of option determined on the date of grant is R 0.11 per option, based on
the Black Scholes Model.
During the period, an amount R 32.89 lakhs has been written back as options lapsed due to termination of RCCL ESAR 2021
Scheme via Board Approval on 3 May 2023.
...... ^ u f n
The Board of Directors at their meeting held on 27 April 2023 approved the sale and transfer of the Company's FMCG Business to
Godrej Consumer Products Limited through a slump sale arrangement on a going concern basis. Accordingly, the transfer of business
was completed against a sale consideration of ? 282,500 lakhs as per the terms of agreement.
This trasnferred business is considered and classified as discontinuing operations in the financial statements. The statement of profit
and loss has been represented to show the discontinued operations separately from continuing operations.
The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the
Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses
accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit
trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such
changes were made and ensuring that the audit trail cannot be disabled.
The Company has enable the audit trail (edit Logs) facility of the accounting software "stage" used for maintenance of all accounting
records. However, the audit trail (edit Logs) are enabled at the application level and not at database because enabling this said facility
will have direct impact on the space utilisation at the Operating System Level
Note 45 - Composite Scheme of Arrangement
The Board of Directors of the Company vide their meeting dated 27 April 2023 approved the Composite Scheme of Arrangement between
Raymond Limited (RL), the Company, Ray Global Consumer Trading Limited (RG) and their respective shareholders under sections 230
to 232 and other relevant provisions of the Act. The Scheme will be given effect to on receipt of requisite approvals.
Note 46 - Figures of the previous year has been regrouped and rearranged wherever necessary. The impact of the same is not material
to the user of financial statements
As per our report of even date
For Walker Chandiok & Co LLP For and behalf of Board of Directors
Chartered Accountants
Firm Registration Number: 001076N/N500013
T§|^ <&-Ý f
Adi P. Sethtfa J$/j Debjit: Rudra Sunil Kataria Priti Alkari
Partner Executive Director &CE0 Director Company Secretary
Membership No. 108840 . V :V :V DIN: 01393433 DIN: 06863609
X
(if // %
Place: Mumbai *( Mir im ]*)) Place: Mumbai Place: Mumbai Place: Mumbai
Date1 30 April 2024 \Wv <*\ ;J?JJ Date: 30 April 2024 Date: 30 April 2024 Date: 30 April 2024
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